There has been no shortage of dire warnings about the mounting US national debt, but President Obama is now offering a different assessment: no big deal.

"We don't have an immediate crisis in terms of debt," President Obama said in an exclusive interview with George Stephanopoulos for "Good Morning America." "In fact, for the next 10 years, it's gonna be in a sustainable place."

It's an assessment that will throw cold water on the latest attempt to achieve a so-called grand bargain to reduce the deficit. After all, a grand bargain would require excruciatingly difficult decisions for both sides - for Republicans, it would mean raising taxes, and for Democrats, cutting future spending on cherished programs like Social Security and Medicare. If there is no crisis, why would either side do it?

So, what happens if this latest effort to reach a deficit agreement falls through? Once again, the president's answer was, essentially, no big deal.

"Ultimately, it may be that the differences are just too wide" to get a deal, President Obama said. "That won't create a crisis. It just means that we will have missed an opportunity."

The president's reasoning is that the series of 11th hour agreements he has struck with Republicans over the last two years - to prevent a government shutdown, raise the debt ceiling and avoid the fiscal cliff - have resulted in enough deficit reduction to get the debt under control.

"I think what's important to recognize is that we've already cut $2.5- $2.7 trillion out of the deficit," he told Stephanopoulos. "If the sequester stays in, you've got over $3.5 trillion of deficit reduction already."

Notice the presstitutes never ask him about kenyancare costs. He sold it as costing $900 billion and not adding a penny to the deficit. The latest estimate is $2.9 trillion over 10 years. Obama is a proven liar and yet the journolisters can’t stop fellating him.

"I think what's important to recognize is that we've already cut $2.5- $2.7 trillion out of the deficit," he told Stephanopoulos.

No, you haven't.

What you've done is to promise to reduce projected future spending increases by that amount in Federal budgets not yet written, as funded by taxes not yet collected, and subject to amendment or change at any time by a Congresses not yet elected or a President given to the daily promotion of falsehoods.

Okay: now try explaining that to low-information voters. A lie can be told and repeated many times while the truth is still clearing its throat.

Humpty Obama took the book and looked at it carefully. ‘That seems to be done right ’ he began.

‘You’re holding it upside down!’ Alice interrupted.

‘To be sure I was!’ Humpty Obama said gaily as she turned it round for him. ‘I thought it looked a little queer. As I was saying, that seems to be done right  though I haven’t time to look it over thoroughly just now  and that shows that there are three hundred and sixty-four days when you might get un-birthday presents ’

‘Certainly,’ said Alice.

‘And only one for birthday presents, you know. There’s glory for you!’

Anyone who knows history ought to compare how the British and Germans financed WW1. The British sold their war loans (and that of their allies) the one place where there was enough capital in the world to absorb it; the New York market. The British had some lean financial years after the war, but the American banks had an interest in keeping the Imperial economy afloat to get their notes paid off.

The Germans were frozen out of that market and sold their war debt...to themselves. All in 5-year short term notes. No foreign banks cared to keep their economy afloat. So five years later, the German central bank printed money to pay off the war debt with worthless marks.

Back when our annual deficits were around a mere $400 billion, there was enough capital in Shanghai, Tokyo and Riyadh to soak it up. But when we went to $1.6 Trillion annunal deficits, we exceeded the world’s willingness or capacity to finance it. So we sold it to ourselves and papered over it with “Quantitative Easing.” In other words, we changed from the British model to the German model.

But we don’t have a debt problem. Just like the Germans didn’t, we’ll have a turbo-inflation problem.

19
posted on 03/13/2013 11:33:39 AM PDT
by henkster
(I have one more cow than my neighbor. I am a kulak.)

Every financial commentator I’ve read or listened too says that the Fed buying all the bonds is what makes them a bad investment. It drives the interest rate down, so you can’t make money on even CDs.

That leaves only the stock market to invest in.

So, all the increase in the stock market is based on an artificial interest rate, and when that bubble breaks, stocks will plunge again. Interest rising will kill the housing and auto markets (the economy). Interest rising will either be the result of inflation or will feed inflation. That will additionally kill buying, wage increases, and trading. That will all kill jobs.

Sounds like a depression to me.

24
posted on 03/13/2013 12:01:18 PM PDT
by xzins
(Retired Army Chaplain and Proud of It! True supporters of our troops pray for their victory!)

An Obama voter is probably the most gullible creature on the face of the Earth. If Obama said he was God himself an Obama voter would be ok, If Obama said the sky was falling an Obama voter would panic.
When Obama says the debt is not a problem an Obama voter drinks it down with ease.

The only reality an Obama voter is concerned with is the world of Obama. This is why only a fool employ’s an Obama voter. Don’t expect sensible judgement in a man who paces his faith in the word of an idiot over the clear evidence of his own eyes & ears.

There is no immediate crisis. Right after the economy takes off like the Challenger, just as I have been saying it would any day now for four years, there’ll be so many dollars coming in, we won’t be able to count it all. It’ll be just like Germany in the 1920s, or failing that, Argentina in the 1970s. In fact, in anticipation of a big surge in spending, I’m going to put a surcharge on shotgun shells and canned goods./s

....and bears don’t crap in the woods, the Pope is not Catholic, Phoenix is not hot in the summer, etc. When you have a media that will go along with blaming it all on Bush and the current House you have it made in the shade.

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